A policyholder’s attempt to make a claim for a private annuity policy of more than $30,000 against Old Mutual was rejected after the High Court agreed with the High Court that he could not even take the case to court because of a deadline imposed by law for civil suits. Expired.
Thomas Kangeri had invested the proceeds from his previous pension fund in 1989 in an annuity plan to give himself a guaranteed income in old age, and insurance cover before then.
Hyperinflation had wiped out value, and Kanger was trying to dramatically raise the resulting paltry value.
The three-judge appellate panel ruled that the claim should have been filed within the three-year timeframe set by the statute of limitations, which sets the deadline for starting a civil lawsuit.
The ruling comes after Mr. Kangiri appealed a Supreme Court ruling upholding a statute of limitations petition filed by Old Mutual, one of the leading insurance companies in the country and internationally.
Mr. Kangeri may or may not have brought suit against Old Mutual, if he had filed his civil action in a timely manner, where others had not been able to win, but he never had the opportunity to present his arguments before the judge, and to face any responses from Old Mutual, Because his case died before it even started.
In 1989, when the Zimbabwean dollar was then worth about 50 US cents, Kanger and Old Mutual agreed to an insurance policy known as the Independence Maker Insurance Policy, and Kanger used the proceeds of his exit from the Air Zimbabwe Pension Fund to make a lump sum payment for the insurance. Policy.
In relation to the insurance policy, Mr Kangeri was entitled to a principal benefit of US$35,521 (equivalent to US$17,138.88 thereafter) plus profit on 1 July 2013, i.e. 24 years later, with similar cover if he died in the interim period. There was a formula for monthly payments for every $1,000 insured, but Old Mutual figured that if Mr. Kanger paid a single premium of $9,914.24, he would receive $35,521 plus his earnings in 24 years. There was an implicit benefit, in Kanger’s understanding and in what he saw as a promise, that he would at least be able to maintain the purchasing power of his insurance premiums over the years.
Those 24 years saw the collapse of the Zimbabwean dollar amid hyperinflation and dollarization of the economy. In 2010, Old Mutual, without being asked to, offered to pay Mr Kanjere US$227.58 for the full value of the policy, which he refused and went on to seek advice from the Zimbabwe Pensions and Insurance Rights Fund, regarding the calculation of the legal entitlement and superannuation payable from this The document and then the actual value of the document.
He was advised that he was entitled to benefits cumulatively totaling $34,856.75, which was the sum of base benefits of $17,138.88 and earnings of $17,717.87 at a fixed rate of 3 percent throughout the benefit period.
This amount represents the total amount to purchase Mr. Kanger’s annuity, which resulted from the maturity of the Independence Maker Retirement Annuity Contract, issued by Old Mutual on July 1, 1989.
Kangiri, who was represented by Mr. Tendai Biti, found himself in a legal dilemma with the insurance company over the annuities owed to him, leading to a legal battle in the High Court.
He filed suit against Old Mutual on April 15, 2016, in Superior Court, seeking to recover the $34,856.75 he said he was owed, the cumulative interest from the insurance policy maturity.
The summons was filed on July 18, 2016 and Old Mutual filed a statute of limitations petition, arguing that the claim was based on a 1989 contract that was due on July 1, 2013.
Thus, according to Old Mutual’s counsel, Advocate Thabani Mpofu, instructed by Cantor and Emerman, the cause of action arose on 1 July 2013 and as to the statute of limitations, the failure to act when the cause of action arose rendered Mr. Kangiri’s claim admissible.
Mr Kangiri lost the case and appealed to the High Court, arguing that the statute of limitations had been suspended due to the issuance of the summons on 9 February 2016 under HC1218/16.
The only issue to be determined in this case was whether or not the trial court erred in holding that appellant’s claim had been dismissed.
In their ruling, Justice Tendai Uchenna, Justice Philistus Chatukuta and Justice Hlekani Mwira unanimously agreed that the lower court correctly found that Old Mutual had discharged its burden of proving that the claim had been stated.
“The appeal has no merit and must fail. Accordingly, an order is made dismissing the appeal with costs,” said Justice Mawira, who found that the lower court’s decision was irrefutable.
Justice Moira noted that Old Mutual had filed a special petition in the absence of statute of limitations and Kangiri’s legal counsel had not advanced any cognizable defense in the pleadings.
Judge Moira ruled that Kangeri’s pension became due from 1 July 2013, but the claim was only made on 18 July 2016, which was outside the three years stipulated by law.
Mr Beattie argued that Mr Kangeri’s insurance policy was of a continuing nature and could not be extinguished by prescription because the terms of the policy gave rise to a continuing liability payable on a monthly basis from the maturity date.
Counsel Mpofu submitted that Mr. Kangiri’s lump sum claim before the court four years after the maturity date of the policy makes the claim settled.
To this end, Advocate Mpofu said the claim was subject to the statute of limitations and the claim was therefore dismissed, being outside the permissible time. Announce
